Topic: Will crypto lead to the next financial crisis? - page 2. (Read 1239 times)
Global crisis always present even without crypto. It is inevitable scenario in our economy especially in country with poor governance and and there is widespread corruption which lead to financial crisis and and economic collapse. Cryptcurrency as a new world currency is not possible because not all countries legalize it and doesn't want a currency out of their control ,so it will not lead to the next financial crisis.
Why would it lead to? It's making everyone some money but at the same time it also makes people stay inside instead of coming back to the mainstream fiat based economy so I don't see how it's going to be that way for cryptocurrencies to cause a crisis, on the other hand, I think that we should look out for constant money injection in the economy through stimulus checks because they will cause hyperinflation.
There will be no effect for now but I know as time goes on, the world government will have to scrap the idea of different currencies majorly the Fiat then the adoption of cryptocurrency in making payments and transactions will come in and there will be no need for the use of Fiat. The world system of Fiat as a form of money will soon end and I bet everyone to prepare for the new change of crypto system of money transactions.The government may have nothing to do with the next financial crisis. The stable coins specially USDT is still a threat and if any action is taken against it, it would surely turn into the world next big financial crisis.
https://www.coindesk.com/policy/2021/11/30/us-policymakers-are-still-evaluating-stablecoins/
It is unlikely that cryptocurrency is capable of leading the world financial system to another crisis. Recently, at one of the summits of the G20 countries, when discussing the problem of cryptocurrency, they came to the conclusion that cryptocurrency does not pose a threat to global financial stability. The state also constantly keeps the issue of cryptocurrency under control. If they see any threat from cryptocurrency, they can solve any problem with general regulation measures.
indeed the government does not seem to have lost control of everything including cryptocurrencies, they just make the rules and everyone has to follow them. and I think crypto is not a threat to the world economy, because crypto does not interfere with other business fields, and is purely independent even though many investors come from stocks that switch to crypto
It is unlikely that cryptocurrency is capable of leading the world financial system to another crisis. Recently, at one of the summits of the G20 countries, when discussing the problem of cryptocurrency, they came to the conclusion that cryptocurrency does not pose a threat to global financial stability. The state also constantly keeps the issue of cryptocurrency under control. If they see any threat from cryptocurrency, they can solve any problem with general regulation measures.
Financial crisis around the globe happens altogether in a cyclic pattern on specific time interval. The last one happened during the year 2008, and similar to such crisis happened in recent years due to the pandemic. Individual countries face financial crisis as a result of poor management and lack of proper planning. This can be overcome with the proper analysis and execution than just implementing for name sake. Crypto isn't gonna lead to crisis, and more governments have this fear. The right one's have taken it as a tool to come out of the crisis.
I agree with you, because we think that the world crisis is taking place in parts in different geographical places, each country after the pandemic has affected in some way, some more than others, however the most prosperous countries have found their exit faster than others, for the countries of South America being in pandemic crisis or not, there are many like Venezuela that do not see the light, the opportunities are running out, there are immigration problems that affect other countries and everything becomes more acute, causing poverty to increase, spending resources for many governments and especially some liabilities for the countries that are recipients of them, thus causing total Xenophobia.
Financial crisis around the globe happens altogether in a cyclic pattern on specific time interval. The last one happened during the year 2008, and similar to such crisis happened in recent years due to the pandemic. Individual countries face financial crisis as a result of poor management and lack of proper planning. This can be overcome with the proper analysis and execution than just implementing for name sake. Crypto isn't gonna lead to crisis, and more governments have this fear. The right one's have taken it as a tool to come out of the crisis.
Bitcoin is not integrated into the global economy like other things related to finance. The global economy is still struggling because of the pandemic, but Bitcoin has grown during most of the pandemic. So, I don't think that cryptocurrencies can cause the next global financial crisis. Proof that BTC price is skyrocketing right now and the economy affected by the pandemic is gradually recovering. recovery but there are still a lot of problems to solve so cryptocurrencies don't lead to a financial crisis.
The growth of crypto is something to celebrate But the impact of crypto on the world economy is negligible. Compared to other industries, crypto is still very young and small. At the moment, cryptocurrency is probably the place where some people can avoid the economic crisis caused by the covid pandemic.
Many people are starting to invest in crypto because of the faster growth in value than other investments. This pandemic made most people realize that investment is very important. This pandemic has made a lot of people out of work, people who invested in the past are very lucky because the investment really helped them in difficult circumstances like this.
That could be the case, considering most of the people nowadays are still in favor of fiat over cryptocurrencies. Which at the end of the day is the very same reason I don't believe crypto could ever cause a financial collapse. The adoptions are as slow as they go and no drastic measures aside from the El Salvador bitcoin adoption have been ever made that could cause discord amongst cryptocurrency fanatics and fiat users
I don't think that crypto currencies are going to be part of the next big financial crisis. There are two big areas which worry me and they are independent of cryptos. The first alarming area is the ever rising debt levels in the world. Most of the western countries run a deficit and there is no end insight. Costs and spending are rising faster than the economic growth and if we include the demographic change than rfe future is not looking good. And the second big area to worry about is ever rising real estate prices. Interest rates are so low that taking out loans is the only chance to buy an apartment. But real estate price never rose forever in the past. There has to be a correction eventually which will turn all these loans bad. In my opinion the next crisis will either be a sovereign or a real estate crisis.
Every crisis is preceded by an unfortunate event that lead the people to desperation. In this case it is the rising debt of the world against the dwindling intrinsic value of the US dollar. Should a massive adoption happen in the near future, we need to strap ourselves for a bumpy ride because price decline and financial crisis for the people who are into fiat is going to happen. There will be no effect for now but I know as time goes on, the world government will have to scrap the idea of different currencies majorly the Fiat then the adoption of cryptocurrency in making payments and transactions will come in and there will be no need for the use of Fiat. The world system of Fiat as a form of money will soon end and I bet everyone to prepare for the new change of crypto system of money transactions.
It might end soon but we don't see that happening anytime near today. What would be the next payment? I doubt that they're ready to adopt bitcoin and other cryptos that they prefer. Many of them still can't the fact that this is money and investment that works perfectly for individuals that have been in here for a long time.
Why would it lead to? It's making everyone some money but at the same time it also makes people stay inside instead of coming back to the mainstream fiat based economy so I don't see how it's going to be that way for cryptocurrencies to cause a crisis, on the other hand, I think that we should look out for constant money injection in the economy through stimulus checks because they will cause hyperinflation.
There will be no effect for now but I know as time goes on, the world government will have to scrap the idea of different currencies majorly the Fiat then the adoption of cryptocurrency in making payments and transactions will come in and there will be no need for the use of Fiat. The world system of Fiat as a form of money will soon end and I bet everyone to prepare for the new change of crypto system of money transactions.
I don't think that crypto currencies are going to be part of the next big financial crisis. There are two big areas which worry me and they are independent of cryptos. The first alarming area is the ever rising debt levels in the world. Most of the western countries run a deficit and there is no end insight. Costs and spending are rising faster than the economic growth and if we include the demographic change than rfe future is not looking good. And the second big area to worry about is ever rising real estate prices. Interest rates are so low that taking out loans is the only chance to buy an apartment. But real estate price never rose forever in the past. There has to be a correction eventually which will turn all these loans bad. In my opinion the next crisis will either be a sovereign or a real estate crisis.
Looking at the past financial crises that happened, they all seem to have a few things in common, such as the mass adoption of a new financial product or technology (e.g. mortgage backed securities in 2008, dotcom boom in 2000). Given the extent to which institutions (and some influential figures) have been manipulating crypto recently, do you guys think this narrative is likely?
I don't think that there is a lot risk coming from crypto currencies to be the root of evil of the next financial crisis. We have been in a zero interest rate world for more than 10 years already. This interest rate makes loans so cheap which is making huge messes in the financial world. Everybody can get a loan for almost free right now which made real estate very expensive. Buying an apartment or house right now will put us in debt for the next 30 years. I think we will see another crash in the real estate bubble.
As of now there isn't even a slight chance for cryptocurrencies to become the root of evil for the next financial crisis. Maybe if the overall market capitalization of all cryptocurrencies is above $5 trillion, we might slowly perceive cryptocurrencies and a potential massive crash as a systemic risk. Right now cryptocurrencies can't really do much in terms of initiating a financial crisis. Other markets are way bigger, riskier and way more dangerous to global financial stability. Just look at the housing market and the price explosion in real estate facilitated with newly printed money. Bubble?
The way the financial systems are linked and the massive use of leverage, small problems can quickly snowball and become systemic. That's why you're seeing Janet Yellen start to talk about the risk posed by cryptocurrency because it's completely unregulated and operates in the dark. Nobody knows if or how big of a problem crypto could spark, and that's a problem.
There is some truth to what you are saying, but there is also a difference between fiat money where you can create 9 dollars of inexistent credit money for every 1 dollar deposited in a bank account and cryptocurrencies where a bitcoin is a bitcoin, no matter what. You can trade crypto with leverage here and there, but you can't create a legal bubble like you can with fiat. What you can do is pump up bitcoin with printed Tether, but that can't be legal unless there is a real dollar (which in essence is a fake dollar) for every single USDT printed on the blockchain.
It's not "inexistent credit money." The vast majority of loans in the fractional reserve system are productive loans, meaning they're made to support new economic activity. As long as that's the case, the new economic activity created by the loaned dollars justifies the expansion of the money supply. This is why the system works. If it didn't work, we would see constant bank failures and the system would have collapsed long ago. But it endures because it works. The criticisms against it you levied are common among people who don't understand it.
Cryptocurrencies will not lead to the next financial crisis. On the contrary, they will help prevent it from happening. We have just seen the case of the bankruptcy of evergrande, bitcoin and the crypto market felt it, overcame it and there we are still immune.
I always have the conviction that bitcoin and cryptocurrencies will solve the economic problems that nations are experiencing.
In the Latin American region they are following in the footsteps of El Salvador, it is only a matter of time before all countries embrace bitcoin.
I always have the conviction that bitcoin and cryptocurrencies will solve the economic problems that nations are experiencing.
In the Latin American region they are following in the footsteps of El Salvador, it is only a matter of time before all countries embrace bitcoin.
Mortgage backed securities are not the main reason for the 2008 financial crisis.
Credit rating agencies were selling fake data to banks,and the banks were lending loans that weren't backed by a big enough collateral.This caused a bubble in the US real estate market and when the bubble popped,the people refused to pay their debts and the banks had liquidity issues.
The crypto market won't lead to a financial crisis,because:
1.The banks won't adopt cryptocurrencies.
2.The majority of the people and retail businesses won't adopt cryptocurrency payments.
When Top county accept 1/2 then all the middle country accept it and then we can get proper news from other so we have to wait to see very good something. Credit rating agencies were selling fake data to banks,and the banks were lending loans that weren't backed by a big enough collateral.This caused a bubble in the US real estate market and when the bubble popped,the people refused to pay their debts and the banks had liquidity issues.
The crypto market won't lead to a financial crisis,because:
1.The banks won't adopt cryptocurrencies.
2.The majority of the people and retail businesses won't adopt cryptocurrency payments.
Looking at the past financial crises that happened, they all seem to have a few things in common, such as the mass adoption of a new financial product or technology (e.g. mortgage backed securities in 2008, dotcom boom in 2000). Given the extent to which institutions (and some influential figures) have been manipulating crypto recently, do you guys think this narrative is likely?
Crpytocurrency will not lead to a global financial crisis because most of the banks doesn't adopt crypto transactions or even the big names and brands of food, clothing, medical and etc. Crypto is just a small scale compared to other leading reasons that can somehow lead a financial crisis. Even if we combine the top 10 coins in the market, still it cannot shake the entire country nor world to cause a financial crisis.
Cryptocurrency are their to help the human race just like bitcoin was created on 2009 after the financial crisis on 2008.
emember why bitcoin was
Cryptocurrency will not cause a financial crisis. The previous financial crisis was caused by the improper operation of the banking system rather than the collapse of the crypto market.
Cryptocurrency accounts for a small proportion in the world's financial system, and its market value is relatively small, and it will not have a particularly large impact on the financial system.
Cryptocurrency accounts for a small proportion in the world's financial system, and its market value is relatively small, and it will not have a particularly large impact on the financial system.
I don't think that cryptocurrencies will be the reason to cause a financial crisis in the future. The main reason could be that FED's continually printing money even without caring about it for example. It is not good to print more money than needed. This will cause your currency to devaluate and it may even lead your country to enter a bad economic condition also at some point.
Cryptocurrencies with a limited and transparent supply are different from fiat currencies, which have unlimited supply, so inflation occurs every year. if this continues, the intrinsic value of fiat currencies will continue to decline, and this could trigger a crisis. but maybe that's when crypto has a chance to have a hand in it
Not crypto leads to the financial crisis (BTC has a fixed limit of 21 million coins, so it can't hyperinflate.) but inflation. The Federal Reserve is printing more and more dollars every day. They’ve printed 10 Trillions of dollars during the past 2020 year or $27 Billion daily ( https://demonocracy.info/infographics/usa/us_stimulus_package_10_trillion_2020/us_stimulus_package_10_trillion.html ). So the inflation rate will run hotter than previously and it's only a matter of time when this will lead to financial crisis.
I don't think that cryptocurrencies will be the reason to cause a financial crisis in the future. The main reason could be that FED's continually printing money even without caring about it for example. It is not good to print more money than needed. This will cause your currency to devaluate and it may even lead your country to enter a bad economic condition also at some point.
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